Quarter 3 DRDLR’s 2017-2018 Financial Performance Report Presentation to the Portfolio Committee on Rural Development and Land Reform 30 May 2018

Fin Performance to date: Programmes

FINANCIAL Performance to date: Programmes Of the total expenditure, 29% was on Restitution; 28% on Land Reform; 18% on Rural Development; 17% on Administration; and 8% on NGMS. Land Reform: Includes transfers to entities, recapitalisation; land purchase and development expenditure Restitution: Includes financial compensation on land claims and land acquisition Rural Development: Includes rural enterprise and industrial development projects; rural infrastructure development; and skills training and development through NARYSEC programme

Fin Performance to date: Econ Class

FINANCIAL Performance to date: Economic Classification cont.. Expenditure on compensation of employees (COE) was R1.569 billion; Goods and services expenditure was R1.026 billion mainly for; contractual obligations such as office accommodation rentals and software licence renewals; legal and travel and subsistence when supporting delivery on the core mandates of the department; Expenditure on transfers and subsidies was R3.390 billion; mainly for households projects (R2.193 billion) and transfers to entities (R1.112 billion); Expenditure on payments for capital assets was mainly as a result of land acquired due to land claims related issues, office furniture, computer hardware and lease of photocopiers. FINANCIAL Performance to date: Economic Classification cont..

Priorities performance

Spending vs Drawings: Programmes Programme / Branch Spending Drawings Under / (over) % spent against drawings 1. Administration 1 027 529 1 354 119 326 589 75.90% 2. National Geomatics Man Serv 464 305 502 487 38 181 92.40% 3. Rural Development 1 062 149 1 338 617 276 467 79.30% 4. Restitution 1 772 651 2 600 155 827 503 68.20% 5. Land Reform 1 697 879 1 995 930 298 056 85.10% TOTAL 6 024 513 7 791 308 1 766 795 77.30%

Spending vs Drawings: Econ Class Under / (over) % spent against drawings R’000 % Compensation 1 569 362 1 660 146 90 784 94.50% Goods and services 1 026 009 1 334 246 308 237 76.90% Interest and rent on land 3 731 - (3 731) Provinces and municipal. 79 985 58 003 (21 982) 137.90% Dept. agencies and acc. 1 112 445 1 142 371 29 926 97.40% Foreign gov. and int. org. 2 385 (2 385) Public corp. and priv. ent. Non-profit institutions 2 619 100.00% Households 2 192 891 3 568 841 1 375 950 61.40% Payments: Cap. Assets 35 086 25 082 (10 004) 139.90% Machinery and equipment 17 280 24 153 6 873 71.50% Land and sub-soil assets 17 806 (17 806) Software and other intangible assets 929 TOTAL 6 024 513 7 791 308 1 766 795 77.30%

ALHA Financial Performance as at end of the 3rd Quarter of 2017/18

FINANCIAL Performance to date: Economic Classification cont.. 3rd quarter total spending amounts to R 466 million as at 31 December 2017, representing 32% of the total allocated budget of R 1. 4billion. The biggest cost drivers are Land Acquisition with budget of R 515m and total spending of R360 million accounting to 70% of its allocated budget. SRR budget allocation of R525m, however with 2% (R9m) spending to date. National office with budget allocation R112m (for rates and taxes and PMU and curators fees) and total spending of R59m representing 53% of the budget allocation The other cost drivers are 1H1H, Recap: commitments and Planning which accounts to 21% of the total allocated budget with a spending of R 31m,. This mainly coming from the PMU fee. FINANCIAL Performance to date: Economic Classification cont..

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FINANCIAL PERFORMANCE TO DATE: PROGRAMMES

FINANCIAL PERFORMANCE TO DATE: PROVINCES

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FINANCIAL PERFORMANCE TO DATE Budget: R515: Expenditure: R 360 mil 70% Land Budget R1.4 billion Budget: 192m Expenditure: R 33 mil 17% Recap 2017/18 SPENDING R466m OVERALL 2017/18 SPENDING R466m Budget: R525 Expenditure: R 9 mil 2% SRR: 50/50 Transfers Expenditure: R 466 mil Budget: R101.8m Expenditure: R nil mil 0% 1H1H Budget: R 19.3m Expenditure: R4.6 mil 24% Planning % Spend: 32% Budget: R 112.7m Expenditure: R 59.6mil 53% Head Office

Registration of Deeds Trading Account Third Quarter Financial Performance report : (01 October – 31 December 2017) .

Executive Summary The Deeds Registration Trading Account is a self-funding trading entity generating its own income, mainly from the registration of deeds and the sale of deeds registration information, of which revenue generated represents budget. In terms of PFMA Trading entities are not allowed to budget for deficit unless there are special arrangements, as a result of these the expenditure projected was aligned to the revenue projected. Deeds Trading Account (billed) R194,6 million revenue and collected R192,9 million revenue representing R1,7 million under collection. The entity projected R175,9 million revenue to be billed and collected for third quarter; but received R198,1 million which includes interest from the bank, resulted in over achievement of R 21,3 million and the amount received represents R198,1 million (113%) of the projected revenue of R175.9 million. The entity collected 99% of the billed amount which is above 95% set target on collection. Debtors are given 30 days after billing to settle their accounts and are suspended after 30 days and handed to debt collector after 90 days Revenue collected in the second quarter amounted to R114,7 million which represented 64% of the R177,9 million revenue billed. When comparing revenue collection between two quarters,(2nd quarter R114,7mil) and (3rd quarter R192,9 mil) there is a increase in collection of R78,2 million. Spending on compensation of employees amounted to R125,7 million representing 89% of their projections of R141,6 million. Deeds spending on goods and services amounted to R48,8 million, representing 122% of the projected spending of R39,9 million. Revenue collected amounted to R192,9 million vs expenditure of R174,4 million which represents 90% of spending vs revenue collected, leaving positive balance of R18,5 million. When comparing the spending vs revenue collected for both quarter 2 and 3, on the second quarter was 111% and 90% on third quarter.

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Consolidation : Economic Classification R’000 Quarter 3 Projected Revenue v/s Spending Quarter 3 Revenue collected v/s Actual spending Variance: Projections v/s Actuals Quarter 3 % Quarter 2 Quarter 1 Revenue 171 741 192 998 (21 257) 112% Interest 4 219 5 097 (878) 121% Total Revenue 175 960 198 095 (22 135) 113% 66.1% 20% Compensation of Employees 141 632 125 650 15 982 89% 61.3% 21.0% Goods and services 39 954 48 845 (8 891) 122% 78.5% 6.0% Depreciation 15 222 8 717 6 505 57% 55.5% Total Operating Expenditure 196 808 183 212 13 596 93% 65.8% 18.0% Surplus/ (Deficit) from Operating Activities (20 848) 14 883 Assets 6 375 3 676 2 699 58% 3.0% 5.0%

Expenditure per office- Economic Classification Name of Office Quarter 3 Revenue Generated ( Billed) Quarter 3 Revenue collected Quarter 3 Comp of Employees Quarter 3 Goods and Services Quarter 3 Assets Q3 Total Exp Variance: Revenue Collected & actual exp Quarter 3 % spent Quarter 2 % spent Quarter 1 % spent OCRD 41 364 40 266 16 837 37 291 385 54 128 -13 862 134% 167% 62% PTA 46 893 46 847 25 771 2 127 27 898 18 949 60% 78% 67% JHB 24 351 24 322 16 333 1 876 2 694 18 209 6 113 75% 79% 80% CPT 43 274 43 224 19 581 1 656 112 21 237 21 987 49% 59% 52% PMB 17 329 17 322 15 430 1 340 25 16 770 552 97% 99% 151% BLM 5 654 5 304 10 064 1 262 30 11 326 -6 022 214% 278% 247% KIM 1 615 3 317 471 18 3 788 -2 173 235% 283% 297% VRY 1 204 1 203 3 514 708 4 222 -3 019 351% 379% 427% KWT 2 010 2 009 3 890 436 373 4 326 -2 317 215% 220% 203% UMT 306 2 383 539 15 2 922 -2 616 955% 903% 738% NEL 5 853 6 175 910 7 085 -1 232 121% 158% 152% LMP 4 727 2 355 229 24 2 584 2 143 55% 0% 149 Total 194 580 192 998 125 650 48 845 3 676 174 495 18 503 90% 111% 83%

Revenue collected in Q 1, Q 2 and Q3 Name of Office Quarter 1 Revenue Generated ( Billed) Quarter 1 Revenue collected Quarter 2 Revenue Generated ( Billed) Quarter 2 Revenue collected Quarter 3 Revenue Generated ( Billed) Quarter 3 Revenue collected OCRD 39 965 35 108 51 032 28 702 41 364 40 266 PTA 37 519 35 252 35 170 23 975 46 893 46 847 JHB 20 119 19 460 21 460 14 895 24 351 24 322 CPT 36 964 35 155 37 917 25 573 43 274 43 224 PMB 14 136 9 274 15 555 10 743 17 329 17 322 BLM 4 554 3 835 4 885 2 631 5 654 5 304 KIM 1 090 1 074 1 428 961 1 615 VRY 852 767 842 644 1 204 1 203 KWT 1 597 1 580 1 811 1 248 2 010 2 009 UMT 322 313 272 211 306 NEL 3 911 3 838 4 213 2 955 5 853 LMP 1 298 3 279 2 113 4 727 Total 162 327 146 954 177 864 114 651 194 580 192 998

Quarter 3 Per Office

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